Listen Live
    Barrels of oil

    Lifting of Anti-Iran Sanctions to Lower Global Oil Prices by $10 Per Barrel

    © Flickr / Carsten ten Brink
    Business
    Get short URL
    Iran Nuclear Deal: Hope for Peaceful Future (163)
    0 84

    According to the World Bank, oil prices are expected to drop by $10 per barrel following Iran's return to the global market.

    MOSCOW (Sputnik) — Lifting of the sanctions the West had imposed against Iran in relation to its nuclear program will lead to significant drop in global oil prices, the World Bank said in a press release.

    "Iran’s full return to the global market will eventually add about a million barrels of oil a day, lowering oil prices by US$10 per barrel next year, according to the World Bank," the bank said in a Monday press release.

    The West had long suspected Iran of trying to develop nuclear weapons, and imposed several rounds of sanctions against it. Some restrictions limited the Islamic Republic’s export of its oil products.

    On July 14, Iran and the P5+1 group, comprising China, France, Russia, the United States, the United Kingdom and Germany, reached an agreement to ensure the peaceful nature of Iran's nuclear program in exchange for the easing of sanctions against the country.

    "Just as the tightening of sanctions in 2012 led to a sharp decline in Iran’s oil exports and two years of negative growth, we expect the removal of sanctions to boost exports and revive the economy," Shanta Devarajan, World Bank Chief Economist for the Middle East and North Africa region, said as quoted by the press release.

    According to the National Iranian Oil company, the country's oil exports could be increased to up to 4 million barrels per day from their current 3-million-barrel level once the sanctions are eased.

    Due to oversupply in the global market, oil prices have dropped more than twofold against the 2014 summer levels, when the price of Brent crude stood at about $115 per barrel. The prices are now hovering at about $50 per barrel.

    Topic:
    Iran Nuclear Deal: Hope for Peaceful Future (163)

    Related:

    2008 Was a Walk in the Park, But $50 Oil is Norway's Worst Nightmare
    Saudi Determined to Crash Oil Prices Until US Shale Breathes Its Last
    Tags:
    oil prices, Iran's nuclear program, World Bank, Iran
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik